AqualisBraemar is to acquire marine and engineering consulting firm the LOC Group in a move it says will strengthen its offshore renewables offering.
The company has entered into an agreement to acquire 100 percent of the shares in Neptune Midco 1 Limited from the ultimate parent company of the LOC Group, LOC Group Holdings Limited.
The purchase price consideration consists of a combination of $20.2 million net cash consideration, subject to customary adjustments prior to closing, plus conditional warrants in AqualisBraemar.
Closing of the acquisition is expected on or around 21 December 2020, subject to approval of an equity issue by an extraordinary general meeting (EGM) in AqualisBraemar, to be held around 14 December.
AqualisBraemar and LOC Group will be trading separately for up to six months following completion of the transaction.
“Our strategy is clear; we want to grow through continued expansion in the rapidly growing offshore renewables industry, and leverage on our position within shipping and oil and gas markets, to support this energy transition,” said AqualisBraemar chief executive David Wells (pictured).
“LOC Group, with its strong and highly complementary footprint within the same industries, is a perfect fit for this strategy.”
Following completion of the acquisition, the combined group will have a total of 880 employees in 85 offices in 39 countries all over the world, AqualisBraemar said.
It added that the firms had complementary market positions, as while AqualisBraemar has a strong position within provision of owners engineering services, LOC Group has a strong footprint within foundation design engineering and marine warranty services.
In addition, whilst AqualisBraemar has focused on offshore wind, the LOC Group’s Innosea brings additional wave, tidal and floating solar capabilities into the combined group.
“The consulting space within marine and offshore energy – including renewables and oil and gas – is ripe for consolidation,” said LOC Group chief executive Dr R. V. Ahilan.
“Our customers’ needs are rapidly evolving, with many branching out into new energy sources, and we believe our joint increased scale and wider global footprint will help us cater for those requirements.”
LOC Group’s CEO, Dr R. V. Ahilan, will continue in the joint company in a newly created role as chief energy transition officer, supporting the group’s ambition of 50 percent of revenues coming from renewables and other sustainability and CO2-reducing activities by 2025.
He will also join the combined group’s executive management team.